Latham (james) Share Discussion Threads

[alter ego] 21/8/2024 11:15

agm statement:

"Revenue for the first four months of the current financial year, namely 1 April to 31 July 2024 is £127m compared with £128m for the same period last year. Volumes are up 3.1% on the same period last year. Margins remain consistent with the second half of the previous year. Overheads and resulting profit are in line with market expectations.

Our cash balances remain strong, and debtors days and bad debts remain consistent with the same period last year.

Most of our customers remain busy and are more confident than at the same time last year."

Happy to hold

[davebowler] 17/8/2024 10:30

hTTps://www.ii.co.uk/analysis-commentary/shares-future-why-firm-just-became-my-second-favourite-ii532607?utm_source=

[c3479z] 09/8/2024 12:03

davidosh
have been holding a modest amount initially also for about 20 yr....haven't had cause to regret what is a very conservatively and well run company, has been put down (Beddard) as 'dull but worthy' but if all the shares had done as well I would be much more prosperous.

[gnome3] 04/8/2024 15:58

c3479z,
I couldn’t find mention of the 50% family ownership on the site for some reason, but I don’t doubt your word. I guess if you’ve been in business for 267 years, you end up with a lot of family shareholders! There must be a lot of “non-significant” family holdings within that 50%. It probably explains more clearly the relative lack of institutional investors.

[davidosh] 04/8/2024 11:22

Meet the family. I have been twice to the Agms and my first was about 17 years ago. David Dunmow is still the FD so a very steady well run company.

James Latham plc confirms that its Annual Report for the year ended 31 March 2024, including the Notice of the 2024 Annual General Meeting ("AGM"), has been posted to shareholders and is now available on the Company's website:



The AGM of James Latham plc will be held at the Leverstock Suite, Holiday Inn, Breakspear Way, Hemel Hempstead, Hertfordshire, HP2 4UA on Wednesday 21 August 2024 at 12.30pm.

[c3479z] 03/8/2024 22:49

gnome 3

according to the history roll on the Latham website, the company floated in 1965,see history download in the 'about us' section of the website....

'more than half of the shares to this day are owned by members of the Latham family'

Hence, the importance the company places on dividend growth perhaps and little institutional investment,

Chief exec/chairman is 8th generation descendent
seems too few generations for a company founded 1757 unless the founder was very young at the outset....

[wad collector] 31/7/2024 22:13

Timber prices have been lower this year than last so far , at least for UK standing roundwood in our part of the world. Not sure quite how this impacts on LTHM given that it is buying ,selling, manufacturing and having to import. The supposed housebuilding boom will obviously help if it happens, but hard to run a business with volatile supply costs. I have no experience dealing with LTHM as they don't have a branch near us but I have concluded that it is much less hard work to make money riding the LTHM share price rise than working on plantations! Having watched the drought kill off thousands of our newly planted trees last summer , I am not sure it is that much more risky an investment either.

[c3479z] 31/7/2024 11:57

market has cottoned on to the strong balance sheet, excess capital, possibility of recovery in end markets and divi, going ex tomorrow?

[gnome3] 26/7/2024 07:49

I think the Family holdings are quite a bit less than that c3479z. According to Stockopedia, there are Family holdings of a little over 20% (it lists holdings above around 2%). There seem to be retail holdings of around 70%. Maybe that's why it's difficult for Institutions to build a decent holding; they have to buy in the market.

[c3479z] 26/7/2024 07:32

Family holdings over 50% and the rest held tightly by individuals and Close, not much stock about in advance of the 71p dividend going ex next week.

[gnome3] 26/7/2024 01:32

I can't believe the lack of Institutional Investor interest in this share, given its track record. Close Brothers almost have the field to themselves.

[c3479z] 25/7/2024 17:09

close asset management accumulated over 100000 shares holds over 6% now.

[wad collector] 14/7/2024 22:42

IC review the results and have changed their Nov23 hold to BUY at 1205p.

[c3479z] 09/7/2024 12:13

sp angel, the only coverage suggests virtually no change in cash balance at the end of the next financial year, compared with this year's accounts, even after payment of the special dividend with steady financial returns elsewhere and a possibility of improvement on the forecasts should business pick up in the second half.

[davebowler] 06/7/2024 16:36

Mentioned here...hTTps://investorschampion.com/channel/podcasts/episode-25-of-the-investors-champion-podcast

[c3479z] 27/6/2024 09:42

may be you were right gnome- could have made a well-considered acquisition or issued redeemable B shares for a capital return
agree very well-invested company in plant, and lots of freehold property, terms and well run company with a loyal workforce and simple business model.

[gnome3] 27/6/2024 08:28

Well, you got your special dividend c3479z. That's a total final dividend of 5.8%, ex-divi on 1st August. They still managed to increase cash flow by 20%, so we're sitting on 30% of the market cap in cash. I detected a slightly more positive vibe for the outlook statement too, and that's from a company that's made a habit of under-promising. Very solid and well-managed company just doing what they do best.

[cwa1] 27/6/2024 08:06

Taxable unless held in an ISA, of course

[c3479z] 27/6/2024 07:27

good results
revenue below forecast 366 to 395
profit, eps, cash balances, dividend well above forecast. so, margins and cash flow better than expected,
outlook fair to good,
total final divi of 71p including special of 45p unfortunately all taxable in UK for UK holder.

[gnome3] 22/6/2024 03:57

Personally, I'd like to see them use some of their cash pile for a few well-considered acquisitions. That feels like the route to go to make a long-term compounder out of this company.

[c3479z] 21/6/2024 23:16

Results due next week,? any chance of a return of capital/special divi, preferably tax efficient return of capital via a mechanism similar to that being used by NSI. Fair observation by gnome in post below.

[c3479z] 23/4/2024 14:01

s p angel reiterates today eps of around 96p and t/o of 374m year end cash of 71m, but no increase next year, likely divi for this year of around 28p, 28p wonder if there would be any chance of a special divi? mentions that they're having to hold more stock due to longer supply chains because of trouble in Red Sea and some smaller competitors are feeling the pinch and dumping lower priced product at marked down price...also uncertified timber coming in from Europe, wonder if some of that originates from Russia? Overall, moderately positive and as anticipated.

Would add that LTHM is well-positioned- exceptionally well-invested company, holds mainly freeholds of depots some last valued ?before 2000 I believe and very strong trade relationships and balance sheet.

[davebowler] 23/4/2024 13:53

SP Angel research -
Forecasts maintained:
We are leaving our forecasts unchanged (FY24E PBT: £25.7m). We are forecasting a 6pp rise in the Group tax rate to 25% in FY24E but the impact of this on earnings is mostly offset by our projected rise in interest income to £2m. Our PBT forecast yields EPS of 96p in FY24E. Investment summary: Our PBT forecast represents a material decline from that delivered in FY23A of £44.5m but this merely represents a reversion to normal market conditions post COVID-19, a period in which the company was, in our view, over-earning from abnormal market conditions. The share price is now only 20% down from its 2022 peak of 1400p which arguably indicates that the market recognised at the time that trading conditions were unsustainable. The earnings base of the business, however, is materially higher than the pre-covid years of 2019-2021A (average PBT £16.5m over those three years). With a FY24E earnings multiple 12x, a modest discount to the overall market, c£71m of net cash and a sustainable dividend yield of 2.5%, we continue to rate the stock as Buy. Price Chart (p) Source: hl.co.uk Special Sits Research Simon Strong [e-mail] [phone] Equity Sales Richard Parlons [phone] Abigail Wayne [phone] Rob Rees [phone] Grant Barker [phone] Stock Data Ticker (AIM) LTHM LN Fiscal Year End 31 March Share Price Price Target 1160p 1600p Market Cap £232.5m EV Dividend Yield £166.5m 2.5% Yr High/Yr Low 1300p/955p inf

[kneecaps2] 28/3/2024 16:29

Alter you are a newboy! I first invested in this super company nearly 29 years ago and they have performed exceptionally well and I am sure this will continue well into the future.

[alter ego] 28/3/2024 15:43

I've held LTHM getting on for 14 years and believe they are very conservative about forecasts but equally focussed on managing the business for the long term. It's a family business of course so plenty of skin in the game and a wealth of experience too.